Answer:
1. Recorded depreciation expense:
Debit Depreciation expense $2,425
Credit Accumulated depreciation account $2,425
2. Recorded the amount of prepaid insurance that expired for the month
Debit Insurance Expense $300
Credits Prepaid Insurance $300
Explanation:
1. Recorded depreciation expense:
Debit Depreciation expense $2,425
Credit Accumulated depreciation account $2,425
2. Recorded the amount of prepaid insurance that expired for the month
The company paid $3,600 to an insurance company for fire and liability insurance for a one-year period, beginning June 1, 2021.
Insurance Expense for a month (at the end of Jun, 2021) = $3,600/12 = $300
The entry to record the amount of prepaid insurance that expired for the month:
Debit Insurance Expense $300
Credits Prepaid Insurance $300
